1. Field of the Invention
The present invention relates generally to electronic transactions, and particularly to verifying and authenticating electronic transactions.
2. Technical Background
The use and uses of electronic transactions in commerce are ubiquitous. Many transactions are being conducted on-line, between users and commercial web-sites operating in the electronic market place. These web-sites are sponsored by banks, stock brokerage firms, retailers, wholesalers and countless others. Other transactions are being conducted using point-of-sale (POS) terminals in brick and mortar commercial establishments. Often POS terminals include credit, debit, and check authorization capabilities. Still other transactions, such as cash withdrawals, are being conducted using ATM machines provided by financial institutions. Some of these devices are used as stand-alone devices and some are networked. Because of the sheer magnitude of cash being transferred electronically, security is absolutely critical. Both financial and commercial institutions are concerned with the difficulty in obtaining verification and authentication during such transactions. Stolen credit cards are often used by criminal elements to fraudulently purchase goods and services, withdraw cash, or conduct other financial transactions. Computer hackers are also a threat.
What is needed is a secure system and method for authenticating and verifying the identity of the parties involved in an electronic transaction. What is needed is a system and method for substantially eliminating the fraudulent usage of debit and credit cards during electronic transactions. A method and system for authentication is needed to provide security during on-line transactions, ATM transactions, and point-of-sale (POS) transactions.